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HomeMy WebLinkAbout06-13-83 Human Resources & Economic Development QinmmitIrr Erpnri (I3o Olrnnn mn Olounril of tilt mug of 001ItII limo: HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE The June 13,1983 meeting of the Human Resources and Economic Development Committee was called to order by its Chairman, Councilman Robert Taylor at 4 :00 p.m. in the Council informal meeting room. Persons in attendance included Councilmen: Harris, Zielinski, Szymkowiak, Crone, Taylor, Voorde, and Serge and McGann; Coleen Rosenfeld, Rich Hill, Jim Wensits, Eugenia Schwartz, Ann Kolota, Craig Hartzer, Mr. Ludwig, Rich Morgan, Jon Hunt, Paul Fortino, and Kathleen Cekanski-Farrand. Councilman Taylor noted that the purpose of the meeting was to discuss several matters related to tax abatement, and Bill No. 39-83. The Committee first reviewed Resolution -9-C dealing with real property tax abatement and Resolution 9-D dealing with personal property tax abatement for the property located at 445 North Sheridan. Mr. Morgan, the attorney for STC Recycling noted that the project was before the Council on several previous occasions The project would bring 30 •new jobs to the community with an annual payroll of $500 ,000 and would seek abatement of$48, 782 for the real property abatement and approximately $180,000 for personal property abatement. The Redevelopment Commission recommended favorably on both Resolutions Mr. Wensits suggested that more information be included in the Resolutions. The Council Attorney suggested that a cover letter be required to indicate the name of the petitioner, company, number of jobs created, and the amount of money requested for abatement: Councilman Taylor recommended that a letter be sent to the City Clerk informing her of this requirement. Because a quorum was not present when Resolutions 9-C and 9-B were discussed, no formal action was taken. . The Committee then addressed Resolution 9-E which sought personal property tax abatemera,,t for 650 North Wilbur. The Redevelopment staff stated that the area qualified for tax abatement however the Redevelopment Commission did not approve the petition. It was indicated that the property in question • was a four color process printing equipment with a net equity worth of $112 ,000 with an expected life of five to eight years. $7 ,342 was the amount to be abated with three or four new employees. Mr. Ludwig,the petitioner was critical of the Redevelopment Department since he was not given notice of the Redevelopment meeting. He stated that many of the questions raised by the Commission could have been answered if he was present. It was noted that a question regarding who would install the equipment had been raised and that local labor was used however a British employee was needed due to his expertise to oversee the installation. Jon Hunt stated that notice from his office would be maintained in the future. Councilman Taylor and the Council Attorney suggested that notice of all meeting: before the Commission and Council be an obligation of the City Clerk' s office. A letter to Mrs . Gammon was suggested. Because a quorum was not present, a formal recommendation was not made. The Committee then reviewed Bill NO 39-83 which would appropriate Putt ►wcs• .. POOLS/HOMO Co. Page 2. Human Resources and Redevelopment Committee $20,500 from the Community Development Block Grant Fund for the neighborhood paintup program. Coleen Rosenfeld explained the program and stated that each home would be inspected at least four times. Last year 61 homes took part in the program which used just under $20,000. This year the program is hoping to reach 20 homes. The decrease in number is due to the fact that repairs up to $500 will be allowed which had not been in the past. Persons eligible for the program would be based on a low income standard with $20,500 being the maximum allowable for a family of four. The program would be on a first come first serve basis for all people who qualify. It was also indicated that $230,000 would be earmarked from the Federal "Jobs Bill". This money would allow all low and moderate income families to participate even though they are not within targeted areas. Beverly Crone questioned what type of insurance and hold harmless provisions were required and was informed that in the past such information was included in the contracts executed between the Board of Public Works and the neighborhood groups overseeing the projects. It was also indicated that an additional $9,000 had already been appropriated for the project. With the presence of Councilman Serge, the Committee now had a quorum. Councilman Serge made a motion, seconded by Councilman Harris that Bill No. 39-83 be recommended favorably to Council. The motion passed unanimously. Councilman Serge then made a motion that Resolution No. 9-C,9-D,and 9-E be recommended favorably to Council. Councilman Harris seconded the motion, and it was passed unanimously. The Council Attorney reviewed Resolutions 9-F, 9-G and 9-H and . indicated that the Council had previously adopted Resolutions for tax abatement of the real property located at 4600 Western Avenue, 1901 Western Avenue, and 1116 South Main. However in light of House Enrolled Act No. 1899 which was passed into law on March 22, 1983 and made retroactive to March 1, 1983 the new resolutions were required. They basically changed the terminology from "urban development areas" to "economic revitalization areas" and brought all other matters consistent with the State law. Council Attorney then reviewed a draft of the new proposed tax abatement ordinance (copy attached) . She indicated that since there appeared to be no conceTsusfrom either the City Administration or the City Council related to criteria adressing affirmative action, local contractors, and related matters, that these items were not included. She specifically noted that the Area Plan Commission was suggested to be dropped from the procedure in an attempt to streamline the process. Under the old State Law the Area Plan Commission was required. Councilman Voorde stated that he did not want to restrict the City' s ability to attract new businesses to our community by well-intentioned criteria such as affirmative action and local contractor requirements. Because counties can now give tax abatement, the City must be competitive. He further suggested that the Redevelopment staff be kept in the process and that the City use the "SIC Codes" for specific types of uses when considering tax abatement. Councilman Voorde further noted that although additional criteria may be well intentioned it could not be enforced. Page 3. Human Resources and Redevelopment Committee Jon Hunt believed that some criteria should be incorporated. Councilman Harris also suggested that affirmative action be considered. Councilman Taylor stated that if such standards could not be enforced that they would be "phony". Councilman Crone stated that the biggest problem in the area of tax abatement is the City's refusal to comply with the ordinance now on the books. She voiced concern about including standards which in all likelihood would be ignored and questioned the basic philosophy underlinc tax abatement. Eugenia Schwartz asked under what circumstances the Council would refuse to issue tax abatement. Ann Kolota suggested that perhaps an annual report could be required of the petitioners. Jon Hunt stated that tax abatement is low on the list of developers considering our community. Following much heated discussion, Councilman Taylor summarized the ordinance by stating that there appears to be basic agreement for 90% of the bill and that such items as an annual report, SIC Codes, utilizing the staff of Redevelopment to review specifically zoning and related areas and affirmative action should be further considered. Council Attorney stated that she would meet with members of the City Administration and have a draft of the revised bill ready for the next meeting of the Human Resources Committee to be held on June 27, 1983. Following further discussion, Councilman Serge made a motion seconded by Councilman Taylor that the meeting be adjourned. The meeting was adjourned at 5 :30.. Respectfully submitted, Robert Taylor, Chairman 4,4sU � r ��, CITY of SOUTH It END � ''���ae��+r Ili. �� �F � ti COMMON COUNCIL 441 COUNTY-CITY BUILDING SOUTH BEND, INDIANA 46601 Area 219 284-9321 BEVERLIE J.BECK President JOSEPH T.SERGE Vice-President June 13, 1983 RAYMOND C.ZIELINSKI chairman, TO: Members of the Common Council Committee of the Whole )1, FROM: Kathleen Cekanski-Farrand RE: Draft of Tax Abatement Bill JOSEPH T.SERGE First District WALTER M.SZYMKOWIAK Pursuant to the May 23, 1983 meeting of the Human Second District BEVERLIEJ.BECK Resources and Economic Development Committee I have drafted Third District a proposed ordinance which incorporates many of the changes LEWIS A.McGANN required by the new State law amendments. Fourth District ROBEthDistctLOR On May 24, 1983 I sent a memo to Mr. Hill, Mr. Hunt, and RAYMOND C.ZIELINSKI Mr. McMahon requesting any proposed amendments which they may Sixth District have. As of this writing I did receive a letter from Mr. BEVERLY D.CRONE McMahon requesting that the Area Plan Commission be dropped AtLarge from the procedure. This suggestion has been incorporated JOHN J.HARRIS,Jr. into the draft. At Large JOHN VOORDE At Large Overall the propsed Bill is drafted purely for discussion KATHLEEN CEKANSKI-FARRAND purposes. It is quite similar to the law presently on the Council Attorney books except that it does incorporate the following changes: 1. Eliminates "urban development area"terminology and replaces it with "economic revitalization" terminology. 2. Incorporates the required maps/plats of the State law as well as requires the amount of the deduction claimed for the first year. 3. Incorporates the new State law citation for legal publication required of the City Clerk' s office. 4. Eliminates the referral to the Area Plan Commission. 5. Requires filing of the resolution and accompanying documents with the County Assessor. Hopefully this draft will serve as a beginning point to direct our discussions on all proposed modifications of our tax abatement procedure. Thank you.